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Pursuant to a congressional request, GAO reviewed the: (1) development status of the V-22 aircraft; (2) Institute for Defense Analyses' (IDA) 1990 report on the V-22 and helicopter alternatives; and (3) Navy's plans to concurrently develop and produce the V-22 variant.

GAO found that: (1) V-22 development will take several years longer and cost billions more than planned; (2) the Navy expects development of the V-22 variant to be completed in 6 years at an estimated cost of $2.5 billion; (3) several IDA study assumptions about V-22 performance may not be realized; (4) the Navy is considering low-rate initial production of 12 V-22 variant aircraft before testing and evaluation can be performed; and (5) the Department of Defense plans to spend about $1 million to conduct a cost and operational effectiveness analysis comparing the V-22 variant and helicopter options.

Recommendations for Executive Action

Recommendation: In performing the new cost and operational and effectiveness analysis of the V-22 variant and the helicopter alternatives, the Secretary of the Navy should ensure that the capabilities assumed in the analysis for the V-22 variant are more realistic.

Agency Affected: Department of Defense: Department of the Navy

Status: Closed - Implemented

Comments: The issue of concurrency and overall acquisition strategy will be considered during the September 1994 Defense Acquisition Board review of the V-22 program.

Recommendation: If the V-22 variant is selected as a cost-effective candidate, the Secretary of the Navy should eliminate or significantly reduce the overlap in its development and production to ensure that it meets operational requirements before requesting procurement funds or making a commitment to production.